

Investor's Corner
Tesla buyers eye new EV bill that extends $7500 tax credit and removes 200k cap
A bill to remove the 200,000-vehicle cap for electric car manufacturers and extend the $7,500 tax credit for new EVs until 2028 gained more supporters recently, with Rep. Darren Soto (D-FL) and Rep. James P. McGovern (D-MA) signing as cosponsors of H.R.6274, also known as the Electric CARS Act of 2018.
The Electric CARS Act of 2018 was initially proposed by Rep. Peter Welch (D-VT) on June 28, 2018, right at the time when Tesla was closing in on delivering its 200,000th vehicle in the United States. Under H.R.6274, the present $7,500 tax credit given to buyers of new electric cars would be extended all the way up to 2028. Electric car makers such as Tesla would also not be faced with the 200,000-vehicle limit that triggers a tax credit phase-out. Tax credits will also be given for the electric cars’ charging stations.
While a 10-year extension of the $7,500 tax credit is a welcome improvement over the previous system, what is really quite impressive with H.R.6274 is the fact that buyers of electric cars would be able to use the amount as a direct rebate for their vehicles upon purchase. This means that car buyers could get an immediate discount for their vehicle, instead of waiting until taxes are filed before receiving their electric car’s $7,500 tax credit. Such a system would make quality electric cars such as the Standard Range RWD Tesla Model 3, which is priced at $35,000 before options, attainable to an even bigger demographic.
When Congressman Welch unveiled H.R.6274 last June, he noted that the United States must transition to a form of transportation that reduces greenhouse emissions in the country.
“Transportation is the single largest contributor to greenhouse emissions in the United States. It is urgent that we transition to cleaner, more efficient modes of transportation. We are in a race for the winner of the technology for electric vehicles, and this credit is going to help spur that,” he said.
Rep. Welch reiterated these points in a recent interview with Alex Guberman of YouTube’s E for Electric channel, where he discussed his motivations for H.R.6274. According to Rep. Welch, the demand for electric cars and a recognition for change in transportations is emerging, and the benefits won’t stop there.
“What I am seeing is, among some of my colleagues, a recognition that the people they represent want an electric vehicle. And, there is real potential job growth if we can give a boost to the electric vehicle industry,” Welch said.
The Electric CARS Act of 2018 currently has four cosponsors, with Rep. Darren Soto (D-FL) and Rep. James P. McGovern (D-MA) joining Rep. Jared Huffman (D-CA) and Rep. Jacky Rosen(D-NV), who supported the bill the day it was proposed. As of date, H.R.6274 has been referred to the House Committee of Ways and Means.
Tesla recently announced that it has sold its 200,000th vehicle in the United States this July. With the announcement, the $7,500 tax credit under the current system is now on a phase-out period, with buyers who receive their vehicles until the end of Q4 2018 being the final batch of Tesla owners who would be eligible for the full $7,500 tax credit. After December, the federal tax credit is set to be reduced by half to $3,750 from Q1 to Q2 2019, followed by another reduction to $1,875 from Q3 to Q4 2019. Under the current system, Tesla’s vehicles delivered after Q4 2019 would not be eligible for any tax credits at all.
Watch Rep. Peter Welch’s interview in E for Electric in the video below.
Elon Musk
Elon Musk explains Tesla’s domestic battery strategy
Elon Musk responded to a new note from an analyst that highlighted Tesla’s battery strategy.

Tesla CEO Elon Musk explained the automaker’s strategy for building batteries from top to bottom in a domestic setting as the company continues to alleviate its reliance on Chinese materials, something other companies are too dependent on.
With the Trump Administration, it is no secret that the prioritization of U.S.-built products, including sourcing most of the materials from American companies, is at the forefront of its strategy.
The goal is to become less dependent on foreign products, which would, in theory, bolster the U.S. economy by creating more jobs and having less reliance on foreign markets, especially China, to manufacture the key parts of things like cars and tech.
In a note from Alexander Potter, an analyst for the firm Piper Sandler, Tesla’s strategy regarding batteries specifically is broken down.
Potter says Tesla is “the only car company that is trying to source batteries, at scale, without relying on China.”
He continues:
“Eventually, Tesla will be making its own cathode active materials, refining its own lithium, building its own anodes, coating its own electrodes, assembling its own cells, and selling its own cars; No other US company can make similar claims.”
Musk, who spent time within the Trump White House through his work with the Department of Government Efficiency (DOGE), said that Tesla is doing the “important” work of localizing supply chains as the risks that come with being too dependent on foreign entities could be detrimental to a company, especially one that utilizes many parts and supplies that are manufactured mostly in China.
It is important, albeit extremely hard work, to localize supply chains to mitigate geopolitical risk
— Elon Musk (@elonmusk) June 3, 2025
Tesla has done a lot of work to source and even manufacture its own batteries within the United States, a project that has been in progress for several years but will pay dividends in the end.
According to a 2023 Nikkei analysis, Tesla’s battery material suppliers were dominated by Chinese companies. At the time, a whopping 39 percent of the company’s cell materials came from Chinese companies.
This number is decreasing as it operates its own in-house cell and material production projects, like its lithium refinery in Texas.
It also wants to utilize battery manufacturers that have plans to build cells in the U.S.
Panasonic, for example, is building a facility in Kansas that will help Tesla utilize domestically-manufactured cells for its cars.
Elon Musk
Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter
Could Tesla dive into the eVTOL market? Morgan Stanley takes a look.

Tesla shares are up nearly 20 percent in the past month, but that is not stopping the only trillion-dollar automaker from attracting all types of new potential sectors to disrupt, at least from an investor and analyst perspective.
Morgan Stanley’s Adam Jonas is not one to shy away from some ideas that many investors would consider far-fetched. In a recent note, Jonas brought up some interesting discussion regarding Tesla’s potential in the eVTOL industry, and how he believes CEO Elon Musk’s answer was not convincing enough to put it off altogether.
Tesla’s Elon Musk says electric planes would be ‘fun problem to work on’
Musk said that Tesla was “stretched pretty thin” when a question regarding a plane being developed came up. Jonas said:
“In our opinion, that’s a decidedly different type of answer. Is Tesla an aviation/defense-tech company in auto/consumer clothing?”
Musk has been pretty clear about things that Tesla won’t do. Although he has not unequivocally denied aviation equipment, including planes and drones, as he has with things like motorcycles, it does not seem like something that is on Musk’s mind.
Instead, he has focused the vast majority of his time at Tesla on vehicle autonomy, AI, and robotics, things he sees as the future.
Tesla and China, Robotics, Pricing
Morgan Stanley’s note also discussed Tesla’s prowess in its various areas of expertise, how it will keep up with Chinese competitors, as there are several, and the race for affordable EVs in the country.
Tesla is the U.S.’s key to keeping up with China
“In our view, Tesla’s expertise in manufacturing, data collection, robotics/ physical AI, energy, supply chain, and infrastructure are more critical than ever before to put the US on an even footing with China in embodied AI,” Jonas writes.
It is no secret that Tesla is the leader in revolutionizing things. To generalize, the company has truly dipped its finger in all the various pies, but it is also looked at as a leader in tech, which is where Chinese companies truly have an advantage.
Robotics and the ‘Humanoid Olympics’
Jonas mentioned China’s recent showcasing of robots running half marathons and competing in combat sports as “gamification of robotic innovation.”
Tesla could be at the forefront of the effort to launch something similar, as the analyst predicts the U.S. version could be called “Humanoid Ninja Warrior.”
Pricing
Tesla is set to launch affordable models before the end of Q2, leaving this month for the company to release some details.
While the pricing of those models remains in limbo with the $7,500 tax credit likely disappearing at the end of 2024, companies in China have been able to tap incredibly aggressive pricing models. Jonas, for example, brings up the BYD Seagull, which is priced at just about $8,000.
Tesla can tap into an incredibly broader market if it can manage to bring pricing to even below $30,000, which is where many hope the affordable models end up.
During the Q3 2024 Earnings Call, Musk said that $30,000 is where it would be with the tax credit:
“Yeah. It will be like with incentive. So, 30K, which is kind of a key threshold.”
Investor's Corner
Tesla bull writes cautious note on Robotaxi launch: ‘Keep expectations well contained’
Morgan Stanley’s Adam Jonas is more cautious about Tesla’s upcoming Robotaxi launch.

Tesla analyst Adam Jonas of Morgan Stanley is telling investors to be wary of the Robotaxi details CEO Elon Musk revealed this week, after a report seemed to land on the prospective launch date of the platform in June.
Earlier this week, a report from Bloomberg indicated Tesla had internally landed on a tentative date of June 12 for its Robotaxi launch in Austin. Shortly after, Musk detailed the successful testing Tesla has already performed without anyone in the driver’s seat.
He also indicated Teslas would self-deliver to customers in June.
Analysts are now sending out investor notes on the announcement Musk made, along with the Bloomberg report. Jonas’s note is more cautious than others.
Jonas believes Tesla needs to shed more details before investors and fans of the company get too excited. He believes there is more information that could be released, but until then, he is suggesting investors “keep expectations well contained.”
He wrote:
“As is typical for highly anticipated Tesla events, we would keep expectations well contained for the (reported) June 12th Cybercab launch event in Austin. However, we would look for a continued stream of updates for the performance and growth of the network thereafter (numbers of cars, miles, trips, etc.) in the days and weeks that follow.”
The tone of Jonas’s note contradicts that of Wedbush’s Dan Ives, who believes the “golden age of autonomous” lies in Tesla’s hands. He seems to believe Tesla will come through on its June 12 launch.
Tesla set for ‘golden age of autonomous’ as Robotaxi nears, ‘dark chapter’ ends: Wedbush
Morgan Stanley’s note is slightly more
Jonas is obviously still bullish, but is much more tentative to move forward with an attitude that communicates skepticism about what Tesla has revealed.
Jonas and Morgan Stanley have a $410 price target on Tesla shares with a ‘Buy’ rating. Tesla stock is trading at around $358 at 12:15 p.m. on the East Coast.
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